In-Depth Trends in Economics

Running head: ECONOMICS
Economics
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ECONOMICS
In-Depth Trends
The demographic changes will be affecting the growth of the gross domestic product
through several channels. Lower growth rate of population will be directly reducing the
labour input (Uchitelle 2019). Secondly lower growth of population will be negatively
affecting the labour supply since it will be leading to higher tax rates which will be reducing
the incentive to work. In case of the United States America, even in times of recession, there
is a high demand for skilled labour.
We have also found that there is a slowdown in the growth of the labour force in the
United States. It have also found out that women in the labour force have increased at a rapid
pace in the last 50 years (Bls.gov. 2019). There have been changes in the age structure of the
labour force. With the growth of the baby boom generation, the generation of the old people
are expected to make up a larger proportion of the labour force in the next two decades. In the
year 2020, the labour force aged more than 55 years old is projected to grow by more than 20
percent. In the coming years the labour force is also expected to become more diverse in
nature.
In the United States, the workers age between 25 to 44 years have fallen from 68
million to 61 million which means a decrease of 7 million (Bls.gov. 2019). The recession of
2008 has known to delay retirement for the older people. There have been an aging of the
baby boomers all over this time. One of the main factor behind the change in the labour force
is the change in the population growth. The growth rate of births declined in numbers
between 1920s and 1930s. There have also been a reduction in the baby bust in the economy.
The distinct change in the pattern of birth can be very well traced in the population shape and
the labour force pyramids.